Tax on savings

sparky666

Hi

I have my net figures for interest received on my accounts, I can claim the tax back but its hassle waiting for tax certificates or even getting them or info from the banks, would I have paid a fixed amount tax% on the interest or would it have been variable through out the year, if so how much should I be calculating. I am guessing 20% tax.:(

Thanks for any advice.

OneADay

Basic rate tax is 20% yes - deducted at source you can assume unless you gave bank instructions not to.
If you are in high rate band, you could pay more tax on savings - but that is decided in the self assessment (if you are required to fill it).

Lokolo

I am confused. Are you a taxpayer? If not, why did you not fill in an R85 form?

If you are a taxpayer, tax would have automatically been deducted from the interest.

OneADay

Lokolo wrote: »

I am confused. Are you a taxpayer? If not, why did you not fill in an R85 form?

If you are a taxpayer, tax would have automatically been deducted from the interest.

If the total yearly earnings are less than 6k or something allowance, no tax is due so you can claim the 20% back.

sparky666

Lokolo wrote: »

I am confused. Are you a taxpayer? If not, why did you not fill in an R85 form?

If you are a taxpayer, tax would have automatically been deducted from the interest.

Because I might go back to work........then again I might not.so filling out a r85 then changing my mind.....its easier to just claim back at the end of the year.

Thanks for replys, most helpful

ViolaLass

I find it easier to fill the R85 in and then pay tax if necessary but it's horses for courses.

Lokolo

OneADay wrote: »

If the total yearly earnings are less than 6k or something allowance, no tax is due so you can claim the 20% back.

I know. But if you fill in an R85 form then it never gets taken off and therefore nothing to claim back.

However, the OP has clarified.

Hungerdunger

sparky666 wrote: »

I can claim the tax back but its hassle waiting for tax certificates or even getting them or info from the banks.

Last year my wife and I completed our self-assessment forms on 7th April and both received tax refunds from HMRC within one week.

We hadn't received tax certificates in respect of all the accounts at the time, but we put a comment on each of our returns that all interest payments had been verified from statements or passbooks, and HMRC were obviously happy with this.

evenasus

I just fill in the necessary figures on the R40 form - no explanation required.
The form also states, not to include any certificates with it.
I've never had a problem.

Mikeyorks

ViolaLass wrote: »

I find it easier to fill the R85 in and then pay tax if necessary but it's horses for courses.

You need to read the declaration you complete on the R85? Completing an R85 regardless doesn't fit with the rules. And as your interest provider tells HMRC they've paid you gross ..... they'll not be terribly amused if they catch you giving false information.

juicyjude

I completed an R85 and through keeping a close eye on my savings interest found I was up to the allowance limit end of Feb so de registered with all the providers for gross interest (got net interest only) until 6th April when I completed a new R85. I know I wont have to de reg again this current tax year as the interest now is so pathetic I will get no where near the allowance figure in my income